OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ¯ (860) 240-0200

http: //www.cga.ct.gov/ofa

HB-5023

AN ACT CONCERNING ELIGIBILITY FOR THE APPRENTICESHIP TRAINING TAX CREDIT.

AMENDMENT

LCO No.: 4710

File Copy No.: 557

House Calendar No.: 369

OFA Fiscal Note

State Impact:

Note: GF=General Fund

Municipal Impact: None

Explanation

The amendment strikes the bill and its associated fiscal impact and will result in the impact outlined below.

The amendment is anticipated to result in a revenue loss (less than $200, 000/yr) to the corporation business tax. The estimate is based on the assumption that only a few construction companies would be eligible for the credit program because most construction companies are not incorporated in such a way that subjects them to the corporation business tax (most are likely organized as S-corporations, LLCs, or LPs)

Of the 50% (in terms of liability) of all businesses subject to the corporation business tax few companies list their primary business as either: (1) building construction – general contractors and operative builders, (2) heavy construction other than building construction – contractors, or (3) construction – special trade contractors.

The table below shows the number of companies and amount claimed under the Apprenticeship Credit program.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either House thereof for any purpose.